Zubu Client Sentiment Nifty50 Report:
It is a Post Market Analysis, by which one can understand Retail trader’s sentiment and discover who was going long and short, the percentage change over time, and whether market signals are bullish or bearish
Nifty50 retail trader data shows 42.92% of traders are net-long, while the number of traders net-short was 57.08%. FII’s created huge longs 3605 & created few shorts 1180, while retailers created few longs 318 & huge shorts 3639.
Nifty50: 15,574 ▼ -7 (-0.0%) Sensex: 51,934 ▼ -2 (-0.0%)
The markets opened at a new high but slipped into the red soon after. Although the closing was flat, 31 of the Nifty50 stocks declined today. Among the sectoral indices, mild buying was seen in the Nifty Media (+0.3%) and Nifty IT (+0.1%) stocks. Meanwhile, the Nifty Metal (-0.7%) and Nifty PSU Bank (-0.5%) indices were the weakest today.
Top gainers Today’s change
Adani Ports ▲ 3.8%
ONGC ▲ 3.4%
Bajaj Finance ▲ 2.6%
Top losers Today’s change
JSW Steel ▼ 2.2%
Tata Steel ▼ 2.2%
ICICI Bank ▼ 1.8%
Manufacturing PMI hits 10-month low
India’s manufacturing activity dropped to a 10-month low in May as the second wave dented economic activity. The Manufacturing Purchasing Managers’ Index (PMI), which reflects factory activity and orders, fell to 50.8 in May from 55.5 in April. Nonetheless, a figure above 50 indicates expansion in activity.
The street was expecting a reading of 52. However, the pandemic-triggered fresh lockdowns and their adverse impact on demand took a toll on manufacturing activity.
Balrampur Chini bets big on ethanol
In Q4, the sugar major reported a 41% decline in revenue from operations. It chose to trade its export quota rather than exporting sugar, leading to lower revenue. Meanwhile, profit declined by only 2.4% YoY and was strongly supported by the high-margin ethanol business.
The company strategically reduced sugar production and focused on higher ethanol production. This is in line with the company’s plans to reduce dependence on the sugar segment. It has approved capex worth ₹425 crore for a distillery facility that will be operational by December 2022. The stock closed flat today, but rose 9% last month.
Defence stocks get make-in-India boost
Defence-related stocks got an initial boost today as the Ministry of Defence (MoD) announced a list 108 items of defence equipment that must be compulsorily bought from indigenous sources.
Of the 108 items, 49 will be banned from import after December 2021. For the other items, the import ban will be implemented in a phased manner by December 2025. Shares of Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics opened the day with gains in the range of 4–5%. However, the initial cheer was short-lived and the stocks ended the day with gains of 1 to 2%.
Narayana Hrudayalaya’s profits soar
Hospital chain Narayana Hrudayalaya reported a near-five-fold jump in net profit for the March quarter to ₹68 crore. During the same period, revenue grew 12.7% to ₹838 crore.
Notwithstanding the strong performance, the company is cautious about the business recovery in the near term in light of localised lockdowns and restrictions on international travel. The stock surged 12% today and has gained over 21% since the beginning of May.
After delivering a strong rally in May, markets started June on a quiet note. While today’s closing was nearly flat, what is to be observed is that the market breadth was weak. As the majority of the large caps have already declared their Q4 results, the attention will now shift to this week’s data releases, which will show the macro-economic reality. The manufacturing PMI was a disappointment. The services PMI data on Thursday and the RBI’s rate decision on Friday will drive further action.